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News Release - Thursday, August 23, 2007
Northland Defines Major Iron-Copper-Gold Resource at Hannukainen
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Vancouver, August 23, 2007: Northland Resources Inc. ("Northland",
TSX-V: NAU), is pleased to announce that the Company has defined a
major, NI43-101 compliant iron-copper-gold resource at the its 100%
owned Hannukainen project in Finland. Total Measured plus Indicated
resources are 84.6 million tonnes with an average grade of 34.6% Fe,
0.20% Cu, and 0.093 g/t Au using a cut-off of 15% Fe. An additional
81.6 million tonnes @ 35.7 % Fe + 0.13%Cu + 0.036 g/t Au have been
defined in the inferred category.

The resource calculation utilized 104 diamond drill holes completed by
Northland up to July 23, and 236 historic holes. Assay results were
still outstanding for 10 holes drilled by Northland which were excluded
from the resource calculation. The resource estimate will be update to
reflect the additional results when the current drill program is
complete.

Resources have been calculated for all of the five known
iron-copper-gold occurrences in the Hannukainen area; Laurinoja, Lauku,
Kuervaara, Vuopio and Kivivuopio. These deposits are characterized by
spatially interrelated near-surface, sub-horizontal lenses of magnetite
mineralization located within an area measuring approximately 1.3 km by
2.7 km.

Using a cut off grade of 15% Fe, the recent and historic drilling has
outlined:

.. Measured Resources 53.14 Million tonnes @ 35.6% Fe + 0.25% Cu +
0.124 g/t Au

.. Indicated Resources 31.46 Million tonnes @ 32.9% Fe + 0.11% Cu +
0.043 g/t Au

.. Inferred Resources 81.63 Million tonnes @ 35.7% Fe + 0.13% Cu +
0.036 g/t Au.

Within the total resources summarized above, at a 15% Fe cut off, the
copper-rich Laurinoja lens contains:

.. Measured Resources 35.40 Million tonnes @ 37.6% Fe + 0.32% Cu +
0.170 g/t Au

.. Indicated Resources 4.48 Million tonnes @ 34.6% Fe + 0.23% Cu +
0.125 g/t Au

.. Inferred Resources 3.45 Million tonnes @ 36.1% Fe + 0.26% Cu +
0.166 g/t Au

A full table of resources calculated at different cut off grades, and a
full table of all drill results from Northland's drilling will be
posted shortly on Northland's website at www.northlandresourcesinc.com.
The technical report will be filed on SEDAR within 45 days..

Buck Morrow, the President of Northland said: "The Hannukainen project
is advancing exceptionally well for Northland. This is our second major
NI43-101 compliant resource for a magnetite body in the Pajala Shear
Zone and the Hannukainen estimate has confirmed and substantially
enlarged the estimated historic resources of 66 million tonnes
calculated by the GTK. The overall tonnages far exceed what we had
hoped to define and reinforce that the historic resource estimates for
our magnetite projects in the Pajala Shear Zone appear to be very
conservative. We hope that our on-going drilling will continue to
expand the resource and move tonnes from inferred into the indicated
and measured categories.

We have now begun the technical and permitting work necessary to
partially drain the Laurinoja open pit to expose the pre-stripped
magnetite mineralization. This will allow our contractors to begin
mining a substantial bulk sample of copper-gold bearing magnetite for
pilot-scale metallurgical test work. Bench scale testing, which we
reported on July 17 has already produced results indicating the
potential for production of a high quality, low sulfur magnetite
concentrate in addition to a copper-gold concentrate."

The Hannukainen area itself represents only one of a number of known
iron-oxide-copper-gold type magnetite occurrences in the Kolari
District, Finland that are currently being evaluated by Northland. On
the Swedish side, at the Stora Sahavaara prospect which is roughly 25km
from the Laurinoja open pit, the Company has defined a significant
NI43-101 compliant iron resource with Cu credits (see Northland's press
release dated May 18, 2006). At the Tapuli deposit, adjacent to Stora
Sahavaara, work is in progress to expand the historically defined
magnetite resource of 60 million tonnes. Northland's broader objective
is to define combined resources in excess of 500 million tonnes of
magnetite mineralization within the region.

Planned Work at Hannukainen

Drilling continues at Hannukainen to further expand the known resource
and define the limits of the deposits as required for mine planning and
design. Additional metallurgical testing is planned, and will include
the ongoing program of bench scale tests, followed by bulk sampling of
the Laurinoja material and pilot plant testing. Results of the
metallurgical tests will form the basis for further mine planning and
detailed engineering required for mine development. Environmental
baseline studies are in progress and will be utilized to support the
applications for operating permits.

Resource Calculation Methodology

The resource modeling was completed in a joint effort between Micon
International of Norwich, United Kingdom and Geovista of Lulea, Sweden.
The resource calculation was based on assay results from 104 holes,
totaling 19,079 meters, drilled by Northland and 236 holes, totaling
41,530 meters, of partially re-assayed historic holes (167 of the
historical holes have been re-logged, re-assaying was done for all
ore-intercepts except for when core was missing or only �-core was
left.) In all, the database comprised 340 holes, totaling 68,609m of
core.

The different mineralised zones were defined by cut-off grades for Fe
and Cu respectively. For the High Grade Fe zone it was 25% Fe while the
Low Grade Fe zone was defined using a cut-off grade of 10% Fe. The Cu
zone was defined using a cut-off grade of 0.1% Cu.

The Block size was defined as 10 x 20 x 2 m (east x north x elevation).
Block grades were interpolated using Inverse distance with a power of
3, with a minimum of 3 and a maximum of 8 samples. The primary search
radius used was 75x75x10 m. The orientation of the search ellipse for
each block was varied based on the Dynamic Anisotropy function in
Datamine. Assays were composited to 2m length. The bulk density of the
mineralisation was based on a regression plot generated from 666 actual
measurements collected. Bulk density is given by 2.85 + (0.027 x Fe%).

Measured mineral resources are defined as those portions of the deposit
drilled at an interval of 50m x 50m with a minimum of 3 samples. Each
block has a restriction to use only one sample per drill hole with a
minimum of 2 octants.

Indicated mineral resources are defined as those portions of the
deposit generally drilled on a grid of 100m x 100m. The blocks were
estimated with a minimum of three samples, utilising a maximum of one
sample from a drill hole.

Inferred mineral resources are defined as those portions of the deposit
drilled at a spacing of 200m x 200m.

Qualified Person

Vance V. Thornsberry, P.Geol., Vice President of Exploration for
Northland, is the Qualified Person as defined in NI 43-101, responsible
for verifying that the resource numbers reported in this release are an
accurate summary of the figures reported to Northland by Micon
International and Geovista. Mr. Thornsberry has also verified that the
historic information presented in this release has been accurately
summarized from the reports quoted. Mr. D.K. Mukhopadhyay, MAusIMM, of
Micon served as the independent Qualified Person for the resource
modeling.

Background

Northland Resources Inc. is a well-structured, debt free junior
exploration company with a portfolio of high quality iron, gold, and
base metal exploration projects in Sweden and Finland.

The TSX Venture Exchange has not reviewed and does not take
responsibility for the adequacy or accuracy of this release.


CONTACT INFORMATION
Northland Resources Inc.
Buck Morrow, President
Ralph Rushton, Investor Relations
Toll Free: 1-866-719-8962
www.northlandresourcesinc.com

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Copyright (c) 2007 NORTHLAND RESOURCES INC. (NAU) All rights reserved.
For more information visit our website at
http://www.northlandresourcesinc.com/ or send
mailto:karenr@goldgroup.com
Message sent on Thu Aug 23, 2007 at 7:05:12 AM Pacific Time
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